VMware Licensing Changes: What Credit Unions Need to Know

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Strategy / Technology

VMware Licensing Changes: What Credit Unions Need to Know

The virtualization world is seeing significant disruption as Broadcom enforces new VMware licensing changes. For credit unions, many of which rely on VMware for secure, reliable infrastructure, understanding these updates is essential for compliance, budgeting, and long-term IT planning.

What’s Changed in VMware Licensing?

Since Broadcom acquired VMware, it has shifted the licensing model from perpetual licenses to subscription-only offerings. The most recent development reported by TechRadar highlights that Broadcom is cracking down on users with expired support contracts. Specifically:

  • Users can no longer use updates, patches, or new versions released after their support expired — unless it’s a zero-day security patch.

  • Organizations found using such updates may face cease-and-desist orders, and potentially, legal action including enhanced damages and attorney’s fees.

These changes are part of Broadcom’s broader strategy to streamline offerings, increase recurring revenue, and reduce the complexity of legacy contracts.

How We Can Help

  • License Assessment & Compliance Review
    We’ll help you audit your current VMware environment, identify risks, and ensure compliance with Broadcom’s new terms.

  • Cost Optimization Strategies
    Whether staying with VMware or exploring alternatives, we’ll develop a roadmap that balances security, compliance, and cost.

  • Migration & Support Planning
    We assist in planning transitions to supported platforms or cloud environments, like Azure.

What to Expect Moving Forward

These VMware licensing changes in 2025 reflect a broader industry trend toward subscription-based models. While this shift offers benefits like predictable costs and faster updates, it also demands proactive planning.

Credit unions should act now to understand their current VMware licensing status and evaluate whether a subscription model or alternative platform is the best fit.

Need guidance navigating VMware licensing changes?